Question
What is a very important piece of information to remember when determining the level of government spending to make the GDP gap zero? Responses -
What is a very important piece of information to remember when determining the level of government spending to make the GDP gap zero? Responses
- The micro equilibrium in the income-expenditure model is found at the point where the level of GDP/national income equals aggregate expenditure.
- The macro equilibrium in the income-expenditure model is found at the point where the level of GDP/national income equals aggregate expenditure.
- The formula in the income-expenditure model is found at the point where the level of GDP/national income equals aggregate expenditure.
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